Celebrities like Angelina Jolie are selling their Los Angeles homes for millions below asking price. Others like Aaron Paul are even choosing to live in faraway countries rather than spend another minute in the city.
It’s not just a Hollywood trend, either: LA County as a whole lost roughly 54,000 residents last year, the most of any county in the US.
Why? Government regulations and ineffective socialist property taxes, of course.
LA’s “mansion tax,” which puts a 4% tax on property sales above $5 million to fund “affordable housing,” has inadvertently suppressed the sale of 9,100 homes, cost the equivalent of 16,650 construction jobs, and a class of small-time developers are getting crushed.
Meanwhile, the city has spent only about 10% of its collections from the tax, and on deeply questionable projects: one is an $800,000 per unit development that still hasn’t broken ground after 4 years.
In addition, condo construction, historically a stepping stone to homeownership for middle-class families, has collapsed by roughly 90% thanks to other burdensome regulations. All of this, of course, comes as the Palisades remains largely unreconstructed.
@nicolewizman1 breaks down how LA destroyed its housing market, triggering a massive exodus 👇